![]() Refinancing into a 10-year mortgage can allow you to secure a lower interest rate without extending your repayment term.Īlthough rates can differ depending on the lender and your own finances, 10-year refinance rates are generally lower than other terms, like 15- or 30-year mortgages. Refinancing to a 10-year loan makes sense when you’ve been paying off your mortgage for many years, or for homeowners who want to get really aggressive with their repayment. When should you consider a 10-year refinance? ![]() Keep tabs on your loan: Store copies of your closing paperwork in a safe location and set up automatic payments to make sure you stay current on your mortgage.You may need to pay 3 to 5 percent of your total loan at closing. Come to closing with cash if needed: The closing disclosure, as well as the loan estimate, will list all the extra expenses (aka the closing costs) needed to finalize the loan.Prepare for your home appraisal: Mortgage lenders typically require a home appraisal (similar to the one done when you bought your house) to determine its current market value. ![]() Having all your documents ready before starting the refinancing process can make it go more smoothly and often more quickly. Your lender will also look at your credit history and net worth, so disclose all your assets and liabilities upfront. Get your paperwork in order: Gather recent pay stubs, federal tax returns, bank/brokerage statements and anything else your mortgage lender requests.Bankrate’s refinance rate table allows you to comparison-shop loans, to help you find the best fit for your financial needs. Shop multiple lenders: Getting quotes from at least three mortgage lenders can save you thousands.You may be able to refinance a conventional loan with as little as a 5 percent equity stake, but you’ll get better rates and fewer fees (and won’t have to pay for private mortgage insurance or PMI) if you have at least 20 percent equity. Determine how much home equity you have: Your home equity is the total value of your home minus what you owe on your mortgage.While there are ways to refinance your mortgage with bad credit, spend a few months boosting your score, if you can, before you start the process. The higher your credit score, the better refinance rates lenders will offer you - and the better your chances of underwriters approving your loan. Check your credit score and history: You’ll need to qualify for a refinance just as you needed to get approval for your original home loan.Set a clear financial goal: There should be a solid purpose to the refinancing - whether it’s to reduce your monthly payment, shorten the term of your loan or tap into your home equity to get money for home repairs or debt repayment.As you weigh offers, be sure to consider APRs, lender fees and closing costs to ensure you’re making accurate comparisons - and maximizing your savings potential. Our rate table filters allow you to plug in general information about your finances and location to receive tailored offers. Compare mortgage offers online: Bankrate helps you easily compare mortgage offers by using our mortgage rate table below.Gather necessary documentation: In order for lenders to give you the most accurate quote, you will need to provide paperwork once connected with a lender that verifies your income, assets, debts and employment.Determine the right type of mortgage: There are a lot of options in home loans, so it’s important to research and decide what type of mortgage might be best for you, given your finances and your short- and long-term goals.Here is how to compare mortgage offers on Bankrate in 3 easy steps: Bankrate’s mortgage rate table allows you to easily compare personalized rates from our marketplace of trusted lenders. Even a 0.1 difference in an interest rate can save thousands of dollars over the life of the loan. Comparison-shopping for a mortgage isn’t just smart - it’s crucial to get the most competitive rate and mortgage terms.
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